"If you see a sign for more than 70% off, strike that retailer
from your list of places to shop," Ellwood told us. "Those
discounts reveal that the company is badly run, and the store was
likely charging too much to begin with."

"It's a huge warning sign, and the customer shouldn't trust
retailers who do this," he continued. Discounts in the range of 30-50% are more
legitimate, in his view.

American attitudes toward discounting have changed in recent
years.

A decade ago, customers would have thought that a 70% discount
was absurd, but now they've come to expect it, Ellwood writes in
"Bargain
Fever."

In 2006, only one in three shoppers found a "70% off" sign
credible. But six years later, more than two-thirds of people
believed the discount and would shop at the store.

Moreover, the number of Americans who only purchase clothes on
sale has gone up to 23% from 15% in 2007.

"The number of discounts today is astounding, but these deals
aren't always in the best interest of the consumer," Elwood said.